Summer reading for teens

Many teenagers are diving into their summer reading list with books about dragon slayers, storm chasers and the occult. But what about those with a taste for titles about investing and the strictly nonfiction world of Wall Street?

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By Steve Rosen

recordnet.com

By Steve Rosen

Posted Jul. 20, 2013 at 12:01 AM

By Steve Rosen

Posted Jul. 20, 2013 at 12:01 AM

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Many teenagers are diving into their summer reading list with books about dragon slayers, storm chasers and the occult. But what about those with a taste for titles about investing and the strictly nonfiction world of Wall Street?

While maybe not riveting reads, titles abound for young investors. The trick is to find books that will appeal to the beginner.

Recently, several readers asked me for recommendations on books that introduce teenagers - and even pre-teens - to investing.

Here goes:

My favorite, and one that I always mention, is "The Richest Man in Babylon." Though published nearly 90 years ago, the financial advice dispensed by author George S. Clason will always be relevant to a new generation of readers. Set in ancient Babylon, the characters learn simple lessons about money and investing throughout the collection of short stories.

Another teen-appropriate book on my short list is "The Motley Fool Investment Guide for Teens" by brothers David and Tom Gardner. It's a worthy educational tool, and an entertaining one at that.

If you have a pre-teen showing interest in the stock market and you want a basic how-to book, two come to mind: "Stock Market Knowledge for All Ages" by Susan Vaccaro Hardeman and "Growing Money: A Complete Investing Guide for Kids" by Gail Karlitz.

If these titles don't stir much interest, here are a few more suggestions from several financial experts I reached out to:

"Yes, You Can Achieve Financial Independence" by James E. Stowers, founder and former chairman of American Century Investments, a mutual fund company. The book is thoughtful and creative with amusing cartoons and leads an individual toward mutual funds, said Sam Renick, who runs It's A Habit Co., a financial education firm.

Renick also recommended anything written by or about Warren Buffett, the Omaha investment guru. One suggestion: "The Warren Buffett Way" by Robert Hagstrom.

"The Millionaire Next Door" by Thomas J. Stanley and William D. Danko. The authors mine reams of data to show the surprisingly frugal traits millionaires have in common. "The main lesson provided is that high income does not equal wealth," said J.R. Rosskamp, managing director of Veritas Partners Inc., a business consulting firm. Rosskamp calls it a "must read, and the earlier the better."

Rosskamp also suggested legendary investor Benjamin Graham's classic, "The Intelligent Investor." Rosskamp said the book, published in 1949 and updated and reprinted at least seven times, was relevant for young investors because it discussed the differences between investing and speculation. "An investor is doomed to fail if he or she does not learn this distinction," Rosskamp said.

Contact Steve Rosen, a personal finance columnist at The Kansas City Star, at srosen@kcstar.com.